Joint Plans for Improving Competitiveness

Their aim is to design a model for the development of the different business chains, in a participative and agreed manner, based on a collection of cooperative activities linked to the main areas of common interest to provide improved competitiveness in each company and each sector.

Figure 5. - Joint Plans for Improving Competitiveness (procedural scheme)

Diagnosis

The Knowledge Cluster of Extremadura is a sector association that brings together companies, foundations and other organisations related to continuous improvement in management and innovation in companies.

Its creation stems from the fact that the possibilities and capacity of companies in Extremadura is not currently known and organisations that need to cover certain deficiencies in their business management systems, often have to leave the region in search for solutions they cannot find inside the region, or that when they do it, it is probably too late.

The "Clusters of Extremadura" project intends to solve this situation thanks to the structuring of sectors, among which is Knowledge.

The diagnosis work carried out has enabled us to summarise the principal general negative aspects regarding the Knowledge "Cluster" of Extremadura, as well as a large list of:

o Critical points or specific problems that were of great importance in the process of drawing up their “Joint Plan for Improving Competitiveness”, as recommendations should stem from existing problems. Regarding this, and listed according to their importance as established by the Work Group participating in the process of starting up the "Cluster", some of the critical points are described below:

- Short-term management models and an absence of coherent strategic plans. - Little business cooperation, the relationship between companies being basically

competitive and with a certain degree of mistrust.

- Dependence on subsidies in the local companies to take on consultancy projects. - Very little investment in R&D and Innovation.

- Lack of interest in the knowledge sector on the part of financial institutions in Extremadura.

- Lack of sources of finance for the sector as a whole.

- Lack of stable organisational structures, mainly due to dependence on public programmes...

o Key areas of Common Interest for the Knowledge Cluster of Extremadura. The heterogeneous nature of the critical aspects identified and the difficulty to work on them individually and in isolation, made it necessary to carry out a regrouping in great Key Areas of common interest, which in this case were configured as follows:

- Strategy and Business Management - Human Resources

- Marketing and Market Access - Innovation

- Finance

- Regional infrastructures - Relations with the Administration

FUNDECYT (Foundation for the Development of Science and Technology in Extremadura) promoted in 2004 the “Digital Knowledge Ecosystem” project. With which they achieved the ambition of becoming a "business centre" where companies associated to the Knowledge Cluster can find attractive opportunities for their profitability, initially investing in promotion and then benefiting through participation in the management and/or execution of the projects designed. This is how the Digital Ecosystem became a star project of the Cluster, with the aim of being a link for the business fabric of Extremadura.

In short, and as a definition, we could say that the Digital Ecosystem is a service for companies in the economy of Extremadura that work on a Technological Platform, encouraging:

o A flow and exchange of information and knowledge.

o Establishment of mechanisms for collaboration between companies in the region by creating a "depot of knowledge suppliers" in Extremadura.

o Facilitating access to solutions for management problems for companies in any sector. Its practical use is very easy, and it will enable:

o The identification of who's who and what do they know how to do o Guarantee of quality and ethical behaviour in companies

o To relate the demand of solutions with supply of services

o The use of a technological platform for companies to communicate with each other

Phase 3: Implementation of competitiveness plan(s)

The intention is to collaborate with agents in each business chain to create management bodies that will ensure the creation of each Joint Plan for Improving Competitiveness or the actual implementation of these plans within the framework of existing cohesive bodies.

Figure 6. - Implementation of competitiveness plan (procedural scheme)

Strategy and Business Management

Taking into account the Key Areas of Common Interest, as well as a series of Critical Points, identified for the “Knowledge Cluster” of Extremadura, the corresponding objectives to improve these problems were obtained.

Figure 7. - Strategy and Business Management: objectives for improvement

*SCALE: 5 is maximum priority for improvement and 1 is minimum.

Then, starting with the critical points obtained from the diagnosis related to the area of "Strategy and Business Management", a collection of Improvement Objectives was formulated to solve problems detected or at least minimise them.

In view of the Improvement Objectives formulated with regard to the "Business Strategy and Management" area, they were grouped in three large "Action Guidelines" that concentrated the ideal combination of responses to the most important aspects. These Action Guidelines are the following:

2- Improvement of the dynamics of the sector. 3- Improvement of management techniques.

Human Resources

Arising from the critical points obtained in the diagnosis of the "Human Resources" area, a series of Improvement Objectives were also formulated to offer solutions to problems detected or at least minimise them.

Figure 8. – Human Resources: improvement objectives

As a result of the Improvement Objectives formulated regarding the "Human Resources" area, two large "Action Guidelines" were designed that intended to properly group the solutions provided. These Action Guidelines are the following:

1- Strengthening training activities and HR development policies. 2- Improving recruitment techniques.

Marketing and Access to Markets

In this case, and also based on critical points that arose from the diagnosis of the "Marketing and Access to Markets" area. Improvement Objectives were established responding to the problems detected or at least trying to minimise their impact (see table below).

Figure 9. – Marketing and access to market: improvement objectives

Taking into account the Improvement Objectives formulated with relation to the "Marketing and Access to Markets" area, three large "Action Guidelines" were designed to group, in a structured manner, the solutions identified. Specifically, these three Action Guidelines are as follows:

1- Encouragement of commercial promotion. 2- Promotion of trademarks.

3- Development of joint commercial operations.

Innovation

With regard to this matter, and as a logical consequence of the critical points that arose in the diagnosis of the "Innovation" area (See table below), some Improvement Objectives were determined to respond to the problems detected.

Figure 10. – Innovation: improvement objectives

Taking into account the Improvement Objectives formulated with relation to the "Innovation" area, three large "Action Guidelines" were designed to integrate the solutions identified in a structured manner. Specifically, these three Action Guidelines are the following:

2- Improve the regional innovation system. 3- Improve University-Business relations.

Finance

Taking into account the critical points that arose in the diagnosis of the "Finance" area (See table below). Improvement Objectives were designed to offer an integral solution for the sector as a whole.

Figure 11. – Finance: improvement objectives

Based on each of the Improvement Objectives formulated with relation to the "Finance" area, a single "Action Guideline" is defined: “Creation of specific finance lines”.

Infrastructures

Aware of the existence of a single route to achieve a certain degree of improvement in the different critical points arising from the diagnosis of the "Infrastructures" area (See table below), a series of Improvement Objectives were designed with the intention of achieving a certain degree of impact on the agents that, at the end of the day, are responsible for these areas.

Figure 12. – Infrastructures: improvement objectives

In this case, the definitive denomination of the single Action Guideline that arose, in coherence with the planned objectives, was called Improvement of Support Infrastructures.

Relations with the Administration

Based on the critical points that arose from the diagnosis of the "Relations with the Administration" area (See table below), some Improvement Objectives were formulated that intend to improve the framework of public support of the Knowledge sector by the autonomic and central governments.

Figure 13. – Relation with the administration: improvement objectives

According to the specific orientation of each of the Improvement Objectives formulated regarding the "Relations with the Administration" area, three "Action Guidelines" were established, which were defined to generate a permanent channel for dialogue between the Administration and the Sector to adapt the public support framework to specific needs. Specifically, these three Action Guidelines were proposed:

1- Improvement of the public support framework for the sector 2- Improvement of the framework for support of R&D&I

3- Improvement of administrative processes

If an analysis is made of the measures proposed grouped by Key Areas of Common Interest, the following information can be deducted:

o The area that is most highly valued in general terms with relation to either of the two variables is that of “Relations with the Administration”.

o The worst valued area is that of “Finance”, especially in the case of valuation of its capacity for implementation.

o The areas with more measures in the intermediate zone are those of “Business Strategy and Management”, “Human Resources” -although with a tendency to be below the Strategy Area-. and “Marketing and Access to Markets” –despite the fact that in this area are also some of the measures with best and worst classification of the proposals-

o Those presenting greater dispersion regarding valuation of the measures are the Key Areas of “Innovation” and “Infrastructures”, where very different evaluations can be observed according to the proposed recommendation.

Best Practice 2: Creating the Metal-Mechanical cluster

We can divide the creation of the Metal-mechanical Cluster4 into the following phases: o Phase 1: Study of the Business Chains.

o Phase 2. Joint Plans to improve Competitiveness. o Phase 3: Implementation.